Bank Reconciliations

A bank reconciliation is a process that ensures all the bank entries are correctly captured by matching the bank transactions to bank statement entries.

Before reconciling a bank account for the first time, the following setup steps must be completed:

1. Add the Bank module to a menu.
2. Set User Access for the bank module: … Bank > Menu (button) > Edit User Access.
3. Create statuses for the bank entries:
   1. … Bank > Menu (button) > Edit Statuses (Bank Header) > Add Default (button).
   2. … Bank > Menu (button) > Edit Statuses (Bank Item) > Add Default (button).

Bank Reconciliations and Bank Imports share the same interface, settings, and set of statuses.

In the context of bank recons, the recon is treated as a bank transaction. The header has its own status and the transactions that are added to the reconciliation are treated as the items with item statuses.

Transactions are displayed if:

• One side of their entry is posted to the selected bank account.
• The transaction is in an Accounting status.

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Bank Reconciliations List View

Buttons Explained

Button	Description
View	Displays a list of bank recons or import entries.
Arrow on View button > Reset Data Filter	Resets the selected filters.
New	Creates a new Bank Import or Bank Reconciliation for the bank selected from the dropdown list.
Menu	Settings – Edit User Access – Edit Accounting (Accounts, VAT Types, Currencies, Credit Terms, Bank Profiles)  – Edit Statuses (Bank Header) – Edit Statuses (Bank Item) Layout

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Filters Explained

Filter	Description
Set	A selection of date options including No Date to display all the entries.
Date (radio button)	Works with the date. Displays entries that were created on that date (i.e. the date on which the recon or import was created).
Updated (radio button)	Works with the date. Displays entries that were updated on that date (i.e. the date on which the recon or import was updated).
Arrows	Adjusts the dates in the direction of the arrows.
Dates	Allows custom dates to be entered.
Account	A dropdown list of bank accounts for selection.
Status Groups	Checkboxes to filter the entries based on the status groups. If none of the boxes are checked, all the entries are displayed.

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Fields Explained

Field	Description
Status	The status of the recon or import.
Bank No.	The system-generated number allocated to the entry.
Type	Whether the entry is an Import or Recon.
Account	The name of the bank account.
Start	The start date of the recon or import. After the first recon is created, this date is automatically set as the day after the previous recon ended.
End	The end date of the recon or import.
Bank Balance	The bank balance at the end of the period.
Ledger Balance	The ledger balance at the end of the period.
Variance	The difference between the bank and ledger balances.
Widget	A submenu with the following actions: – Edit: Opens the import or recon for editing. – Delete: Deletes the import or recon.

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Bank Reconciliations Edit View

Buttons Explained

Button	Description
Arrows	Navigates between bank reconciliations / imports.
New	Creates a new Bank Import or Bank Reconciliation as selected from the dropdown list.
Save	Saves any changes
Actions	Insert/Update Bank Transactions: Generates a list of transactions that were posted to the specific bank account. Delete Bank Reconciliation: Deletes the bank reconciliation.
Menu	Open Ledger: Opens the transaction in the ledger. Settings – Edit User Access – Edit Accounting (Accounts, VAT Types, Currencies, Credit Terms, Bank Profiles)  – Edit Statuses (Bank Header) – Edit Statuses (Bank Item) Layout

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Fields Explained: Header

Field	Description
Status	A dropdown list of statuses to select a header status.
Status Bar	An area to type a note.
Bank No.	The system-generated number allocated to the entry.
Type	Whether the entry is an Import or Reconciliation.
Account	A dropdown list of bank accounts to select one / Prefilled with the bank account selected.
Date Start	The start date of the recon or import.
Date End	The end date of the recon or import.
Note Field	A field to type a note.
Bank Balance	A field to enter the bank balance as per the bank statement.
Ledger Balance	The ledger balance at the end of the period.
Variance	The difference between the bank and ledger balances.

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Fields Explained: Transactions

Button and Checkbox	Description
Synchronise Ledger	Automatically opens the clicked transaction on the right panel.
Done	Changes the status of all the selected entries to Complete.
Remove	Removes all the selected entries. These entries can be added again by clicking Actions (button) > Insert/Update Bank Transactions.
Refresh (button)	Refreshes the transactions with changes made.

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Field	Description
ID	The system-generated number for the entry.
Status	The item’s status where item refers to the transaction (which is an item on a bank reconciliation).
Date	The date of the transaction.
Description	The transaction’s description.
Amount	The transaction amount.
Created	The date on which the entry was created.
Updated	The date on which the entry was last updated.
Updated By	The user who last updated the entry.
Trans No.	The original Transaction Type code and number.
Widget	A submenu with the following action: – Done: Sets the item’s status to Complete. – Open Ledger: Opens the transaction on the right panel. – Remove Item: Removes the transaction from the bank recon. This step is necessary if the transaction must be edited.

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Tutorials

These tutorials explain how to create and edit bank reconciliations.

How to Create a Bank Reconciliation

1. Navigate to Bank.
   • Note: The module is named Bank, however, it might be renamed on the menu (e.g. to Bank Recon or Bank Import). It can be added to any menu group (e.g. Accounting).
2. Click New (button) > and click one of the bank accounts listed under Bank Reconciliation.
3. Complete the following fields:
   1. Start = If this recon is the first bank recon, select a date from the calendar. If previous recons exist, this date is automatically filled in as the day after the previous recon ended.
   2. End = Select the end date from the calendar.
   3. Bank = Type the closing bank statement balance.
4. Click Save (button).
5. Click Actions (button) > Insert/Update Bank Transactions.
6. Check each entry against the corresponding entry on the bank statement.
   1. If they match, check the checkbox.
   2. If the amounts differ:
      1. Right click the entry and click Open Ledger on the context menu.
      2. Edit the amount as needed.
         • Note: Most likely you need to change the transaction’s status to allow editing and change it again afterwards to its previous status.
      3. If there are missing entries, enter them as you would any other similar entry (e.g. Bank Charges can be recorded as a Bank Payment).
      4. Return to the bank recon and click Actions (button) > Insert/Update Bank Transactions.
      5. Check the checkbox next to the entry you edited.
7. Once the variance is zero:
   1. Click Done (button) to update all the checked entry’s statuses.
   2. Change the status of the Reconciliation in the header to Complete.

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How to Change Entry (Item) Statuses to Done

1. From editing a bank reconciliation:
   • For a single entry: Right click the entry and click Done on the context menu.
   • For multiple entries: Check the checkboxes next to the entries, click Done (button) above the list of entries.

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How to Change Entry (Item) Statuses to Pending

1. Edit a bank reconciliation.
2. Right click an entry and click Remove Item on the context menu.
3. Click Actions (button) > Insert/Update Bank Transactions.
4. The entry is added back with a Pending status.

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Learn More

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